Modifications to the Temporary Foreign Worker Program (TFWP) in Canada have been announced by Employment Minister Randy Boissonnault and Immigration Minister Marc Miller.
This narrative is still evolving. This press conference included further announcements. As soon as new details are available
Canada implemented a number of short-term policies to help improve labor market circumstances during the pandemic. But Canada has now started to remove these interim policies.
“The state of the economy has changed since then. Some of these measures are no longer necessary, according to Minister Boissonault, as the gap between unemployment and job openings is shrinking and the labor market is becoming more competitive.
The TFWP was created to grant work permits to foreign nationals who can assist in bridging Canada’s workforce shortage. Companies in Canada that want to use the TFWP to hire foreign workers must provide a Labour Market Impact Assessment (LMIA) to bolster their application, proving that no suitable Canadians or permanent residents were available to take the position.
During the pandemic, Canada temporarily extended an LMIA’s validity duration to 12 months in an effort to improve labor market circumstances. The validity duration of an LMIA will now return to six months as of May 1st, 2024. Note that this change will not affect employers who are a part of the Recognized Employer Pilot program.
The proportion of low-wage workers who applied through the TFWP to a Canadian business’s workforce cannot exceed 20%. In 2022, Canada raised that ceiling to 30%, but only temporarily and only for specific industries. Only the construction and healthcare industries will be permitted to employ up to 30% of their personnel with low-wage TFWP work permits as of May 1st, 2024.
Note that seasonal employers and the agriculture industry will continue to benefit from the cap exemption.
These adjustments are being made as Canada works to improve the integrity of its immigration laws, which are crucial to the country’s economy. A rapid and unsustainable surge in international student enrollment has prompted Canada to propose modifications to its Post-Graduation Work Permit (PGWP) program, including a cap on study permits.
“Canada’s number of temporary residents has grown dramatically recently, and as of 2023, it might account for 2.5 million, or 6.2% of the country’s total population. Over the next three years, we want to reduce the number of temporary residents to 5%,” stated Immigration Minister Marc Miller. Every new family and resident should have access to the resources they require and be prepared for success. Our ultimate objective is to guarantee a sustainable, well-managed immigration system that is needs-based.
